Solution-Prepare the statement of cash flows for carolina

Prepare the statement of cash flows for carolina

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Reference no: EM132221345

Question - The following financial statement and supplemental information is available for Carolina & Company as of December 31, Year 3.

	12/31/Y3	12/31/Y2
Cash and cash equivalents	216,200	131,000
Accounts receivable-net	244,000	200,000
Inventory	32,000	45,000
Marketable securities	17,000	-
Land	237,000	187,000
Buildings and equipment	140,000	75,000
Less: Accumulated depreciation	-53,500	-43,000
Total Assets	832,700	595,000
Accounts payable	197,000	110,000
Bonds payable	110,000	60,000
Common stock ($10 par)	230,000	210,000
Additional paid-in capital	130,000	115,000
Retained earnings	165,700	100,000
Total Liabilities and Equity	832,700	595,000
Net sales	600,000
Cost of goods sold	400,000
Gross profit	200,000
SG&A expenses	-60,000
Depreciation	-23,000
Operating income	117,000
Interest expense	-15,000
Gain on sale of equipment	7,500
Income before taxes	109,500
Income tax expense	-43,800
Net income	65,700

Additional Information:

Carolina & Company uses U.S. GAAP.

On March 1^st the company sold a forklift with a book value of $22,500 for $30,000. The forklift was purchased for $35,000.
On June 5^th the company issued 1,000 shares of common stock for $35/share.
$50,000 in bonds were issued at par value on September 15^th.
On October 1^st land and a building were purchased for a new distribution center in the amount of $150,000. The land was appraised for $50,000 by an independent appraiser.
On December 30^th the company purchased the stock of A & V for $17,000. This investment is classified as available for sale.

Using the facts from the prior page, prepare the statement of cash flows for Carolina & Company for the year ended December 31, Year 3.

Reference no: EM132221345

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Prepare the statement of cash flows for carolina

Reference no: EM132221345

Reference no: EM132221345

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